Property Exemptions Under Arizona State Law Explained

Property Exemptions Under Arizona State Law Explained

When you file for bankruptcy, you are given the chance to save some of your properties by filing a mandatory schedule of assets and liabilities along with a schedule of exempt property. This is known as Schedule C. This means that the individual debtor can protect certain property from the claims of his creditors by relying on either the exemptions in the federal bankruptcy law or that provided in the pertinent laws of his home state.

The federal bankruptcy law further contains a provision that authorizes each state to adopt its own exemption laws. This is actually what applies in the state of Arizona. In the event that you decide to file for bankruptcy in such state, it is essential to be aware that Arizona is an “opt-out” state. This means that those who pursue bankruptcy proceedings in the state are allowed the exemptions set forth in Arizona statutes and federal non-bankruptcy statutes. They cannot, however, claim exemptions under the United States Code.

Hence, you can see how extremely important it is to secure the legal services of an experienced bankruptcy lawyer in Arizona if you decide to file for bankruptcy in the said state. Your bankruptcy lawyer will be able to help you delineate those properties that can be claimed under the exemptions provided by Arizona statute. Moreover, he will also assist you on how to apply the value limitations set forth under the same legislation. Basically, the individual has to establish that he had been domiciled in the state for at least two years prior to the filing of the bankruptcy petition. It is again, your bankruptcy lawyer who can help you properly establish this fact of residence for all of that two years in the state.

So what happens in case the individual is ineligible to claim the property exemptions under Arizona statute? In this situation, he may be able to claim exemptions provided under the Bankruptcy Code, instead. Note, however, that the exemptions he can claim under such Code should be properties that are not listed as exemptions under the Arizona Statute. If you would look at it, this is a highly crucial and technical matter that an ordinary person cannot accomplish effectively by himself. If you wish for your bankruptcy proceedings to flow smoothly and progress in the quickest way possible, you have to consult with extensively experienced bankruptcy lawyers in Arizona before making any decision on the matter.